Soldier Strategy

Soldier Strategy

Updated: Aug 24, 2022
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I. Soldier Strategy: Part 1

On Friday, February 10, the NZD/USD pair gave us 2 purchase entries with the Soldiers’ Strategy, which today, Monday, February 13, were successfully closed. For those who do not know this trading system, we tell you that the strategy seeks to match a good Congestion Zone (ZC) with a great candle or candle system (soldiers) that has shown great strength in the movement of the price along the length of the candle or 2 candles in a row. This is clearly seen in the attached chart and the entry is a combination of candlesticks showing a weak environment (a large hammer or hammer for example) or a large white candlestick ( marubozu ) compact within the bearish leg produced on the 9th and 10th of February. That is why it is better not to program with this strategy but to wait to see how the candles end (4h or daily) and only enter the market if there are signs that the downward leg has weakened as shown by those 2 hammers at the prices of 0.8292 and 0.8272 approx. in the ZC environment.

Estrategia de los soldados en forex - Ejemplo en el par NZD/USD

So we did and entered the second hammer. This is a short and medium term system, so I recommend having 2 types of output, dividing the risk into 2 parts or blocks. One that closes with a profit equal to the stop (this is obtained by analyzing the graph) and where it would concentrate more lots and the other block that closes at double or triple the number of points with respect to the stop. Simple and very logical within risk management. We have already closed the position and I am attaching a real account where you can see that our exit was very fast and allowed me to earn 2.7% profitability with only the first block. Do not operate to operate, trading is a subject of great discipline and criteria. Only then will they understand how financial markets work.

II. Soldier Strategy: Part 2

Here we have another clear application of this strategy. It happened to the Australian dollar (Aussie) during the second week of February. The AUD/USD entered to look for the Congestion Zone (ZC) that had formed days ago caused by the two soldier candles painted in light blue. It is not uncommon for the price to search for the ZC again and give us a clear signal (see the black candle marked with a red date) that the downward leg was beginning to weaken. We remind you that it is necessary to be trendsetting in the short term. In the end we have a confluence of the three factors that should have given us the confidence to buy the AUD/USD. I recommend diversified money management for those just starting out in the exciting world of trading. Thus, it was possible to open 2 buy entry blocks at the close of the candle in the area of 1.0665 approx. concentrating the greatest risk in one of the blocks but that is parallel is the one that can be closed positively the fastest.

Estrategia de los soldados en forex - Ejemplo en el par AUD/USD

Analyzing the graph, with a stop of 50 points you would have been more than protected. If with the first block he had sought the same amount then his trade would have been closed brilliantly and running the stop of the second open block (at the entry price) he would never have been a loser and with peace of mind the price came to travel more than double (for to be more exact I get up to 113 pip’s). Concentrating more risk on the first block that seeks to exit quickly is a good idea, especially in the short term due to probabilities, since it is more likely to close positively. Think about it and backtest it. Do not operate to operate, trading is a subject of great discipline and criteria. Only then will they understand how financial markets work.

III. Soldier Strategy – Part 3

With this operation carried out, we close the 3 parts that make a small introduction to the soldiers’ strategy and its use in the foreign exchange-forex market. Again we have a large area of congestion in yellow that was enforced during the fourth week of January to the first week of February and that shot the EUR/USD to levels of 1.3300 approx. Then, of course, the price corrected and the best area to wait for it in purchase was the yellow area that converged with the 38.2% Fibonacci. Observe the white candle inside the blue circle. It is clearly a sign that the price had to react to a whole week of falling euro and it did it in the best way. Once said candle was closed, it was the best time to buy and have maximum protection that could be the body of the candle and seek to earn at least that amount (if we approached it as a short-term operation); without discounting that it was also possible to go looking for double and triple the risk (inclusive) since it made a tour of up to 130 pips.

elEjemplo de la estrategia de los soldados en par de divisas EUR/USD

I want to emphasize that it is not about “just looking for a good congestion zone”; the system goes beyond that since there has to be a “large welded sail” of a good size that respects the context and on the other hand the moment of entry must be done with the appropriate sails (meaning at the most opportune moment) . I enclose the operation performed and its result that reflects the efficiency of this system in the best way. Because it is about operating and not about philosophizing with trading. Be careful, there are no magical or miraculous strategies, but a good trader can do magic with his capital management. Do not operate to operate, trading is a subject of great discipline and criteria. Only then will they understand how financial markets work.

Sources & references
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James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.

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1. News Trading Strategy
2. FX Trading with CFDs
3. MACD Strategy
4. Countertrend Strategy
5. Martingale
6. Soldiers Strategy
a. Soldier Strategy
8. Trendline Strategy
10. Roller Coaster
11. Stop Loss Strategy
12. Pisco Sour Strategy
13. European Open Strategy

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